Five-year Action Plan to Boost Exports

Aspirant IAS Academy

Context

The Department of Commerce is working on a five-year action plan in order to provide the building blocks for attaining the goal of $2 trillion exports of goods and services by 2030.

Five-Year Action Plan to Boost Exports - Current Affairs 2024

About

  • The final goal is to gain $1 trillion exports of products and $1 trillion exports of services by means of 2030.
  • The focus areas are enlargement and diversification of products and markets,  facilitating MSME export, growth of e-trade, increase to the services sector, development of logistics and ease of doing enterprise and bringing down transaction time and costs.

India’s Share in Global Trade

  • In 2023, the country’s share in global goods exports and imports stood at 1.8 per cent and 2.8 percent respectively.
  • Export Items: India’s top exports nevertheless stay conventional objects like petroleum merchandise, gemstones & jewelry, textiles, chemical compounds and pharmaceuticals, a breakthrough has been executed in phrases of growth in exports of telecom products, especially cellular phones.
  • Concern: Last fiscal, India’s exports have been hit by slowdown in global demand as turmoil in the Middle East and  Russia’s war on Ukraine persisted to affect economies worldwide.
  • Future Outlook: In the contemporary monetary things appear extra upbeat.
    • Goods exports within the first quarter of 2024-25 improved 5.84 per cent to $109.96 billion. This is per global businesses like WTO predicting constant growth in international change in 2024.

Challenges

  • Lack of Diversification: India’s export growth undertaking lies in diversifying its markets in addition to merchandise.
    • The US and the UAE have remained the top export locations with the 2 accounting for approximately 25 percent export share in 2023-24. 
    • Exports to new markets like the Netherlands, Saudi Arabia, Brazil, and Indonesia have expanded consistently over the latest years, there may be scope for an awful lot more diversification, both in terms of merchandise and locations.
  • Streamlining and Reducing Time: It has been a constant enterprise of the authorities to reduce costs and time taken for exports with the aid of lowering paperwork and facilitating online transactions.

Government has taken the following export advertising projects

  • Assistance furnished via numerous schemes to promote exports, particularly, Trade Infrastructure for Export Scheme (TIES) and Market Access Initiatives (MAI) Scheme. 
  • Rebate of State and Central Levies and Taxes (RoSCTL) Scheme to promote labour oriented area export has been implemented when you consider that 2019.
  • Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been applied since 2021.
  • From 2022 it exposed sectors like prescribed drugs, organic and inorganic chemical substances and articles of iron and steel.
  • Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase Free Trade Agreement (FTA) utilization with the aid of exporters.
  • Districts as Export Hubs initiative has been launched with the aid of identifying merchandise with export potential in every district, addressing bottlenecks for exporting these products and helping neighborhood exporters/producers to generate employment inside the district.
  • Regular tracking of export overall performance with Commercial Missions overseas, Export Promotion Councils, Commodity Boards/ Authorities and Industry Associations and taking corrective measures every now and then.
  • Foreign Trade Policy (FTP), 2023 goals to promote e-Commerce exports via bringing such exporters below the ambit of diverse export merchandising schemes of the Government.
  • Following measures had been taken by way of the Government to maximise the growth of domestic markets and to increase its reach globally;-

Way Ahead

  • Increasing India’s meagre share in international trade is one of the dreams for the government.
  • Under the 100-day agenda avenue-map, the Commerce Department is hopeful of launching its Trade Connect’ e-platform to assist exporters do commercial enterprise and get in touch with relevant stakeholders of international exchange.
  • The Commerce Department needs to raise awareness on increasing exports to markets along with Central Asia, Africa and Latin America. 
  • Exports may also pass up considerably in countries and areas with which FTAs are being negotiated consisting of the EU, the United Kingdom and Oman.

UPSC Mains Practice Question

Q. What are the key features of Foreign Trade Policy 2023 by India on the country’s international trade and economic growth? (250 words)

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